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Mosaic sees tight global potash supplies, restarts Canadian mine

Credit: REUTERS/Scott Audette

By Rod Nickel

WINNIPEG, Manitoba, Aug 2 (Reuters) - Mosaic restarted a Canadian potash plant last month after idling it since December due to waning demand for the crop fertilizer, and said it sees tight supplies through 2023.

Mosaic restarted the Colonsay, Saskatchewan mine to offset a short-term drop in potash production that was due to summer maintenance at the larger Esterhazy, Saskatchewan mine, the Tampa, Florida-based company said on Tuesday. It also sees global potash constraints, particularly from sanctioned producer Belarus and at North American ports.

War in Ukraine and extreme weather are limiting crop supplies, elevating the importance of fertilizer to maximize production, CEO Joc O'Rourke said on a Wednesday call with analysts.

"We're already seeing robust demand in several of our key markets since the spring," O'Rourke said, referring to North America and Brazil.

Mosaic shares slipped 0.8% to $39.90, a day after the company reported lower than expected profits.

In July, a strike by dock workers at Canada's Port of Vancouver, now ended pending a worker vote, led to Canpotex withdrawing all offers for new sales.

Canpotex, owned by Mosaic and rival Nutrien NTR.TO to export their potash offshore, is also repairing mechanical problems at its Portland, Oregon port that further restrict shipments.

Nutrien last month reduced potash production at its Cory, Saskatchewan mine due to the strike.

(Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by David Gregorio)

((rod.nickel@tr.com; Twitter: @RodNickel_Rtrs;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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